06/06/05 Senate Passes State Budget Bill
The Ohio Senate passed its substitute budget bill early Thursday, June 2, following a rather contentious debate on several issues, including local government funding. The bill will go back to the House this week and, assuming it is rejected, will go to conference committee for compromise and finalization by the end of the month.
The final version of the Senate budget retained many of the proposals recommended by the Senate Finance Committee or that were in the omnibus amendment bill offered on the Senate floor, including:
- Removing permissive language for public libraries to charge fees for non-print materials;
- Transferring $5 million to the LLGSF to fund the continuation of the freeze through 2005 (this is not new money for the LLGSF, just a technical amendment to make sure the spread sheets actually balance);
- Establishing $100,000 in new money in the OPLIN line item to provide money to public libraries to offset the costs of purchasing filters;
- Creating the Joint Legislative Tax Reform Impact Study Committee to study issues related to the CAT (Corporate Activity Tax) and the TPP (Tangible Personal Property) phase-out and replacement funds; and
- Adding one non-voting member to the Local Government and Library Revenue Distribution Task Force from the County Commissioners' Association, the Ohio Library Council, the Ohio Municipal League, the Ohio Township Association, and the Ohio Parks and Recreation Association.
Public library funding will remain frozen at 2004 levels through December 2005, and then will be reduced by 5% beginning in January 2006 and continuing through June 2007.
Personal income tax (the source of the LLGSF) will be cut by 21% over the next five years (4.2% per year) - impacting libraries if the LLGSF returns to formula in July 2007.
The OLC will provide updates as information from the conference committee becomes available.
